Sunday, January 1, 2012

The Issue is price dispersion caused by the Fed

I don't know of anybody serious who advocates raising interest rates when headline inflation rises if core inflation is currently and is expected to remain low.

Does anybody know of anybody serious who advocates raising interest rates when core inflation is currently and is expected to remain low. Brad Asking

Do you believe that distorting the real yield curve causes price distortion? Ben wants a weaker dollar, he wants imports to be priced higher than equilibrium. How do we get that? Well, drive dollars out of the country by keeping domestic rates lower than equilibrium.

For example, should we keep artificially high oil prices to encourage exports of refined petroleum?

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